Anhui Jiangnan Chemical Co., Ltd. 2021 third quarter report

Stock code: 002226 Stock abbreviation: Jiangnan Chemical Announcement number: 2021-095

The Company and all members of the Board of Directors warrant that the information disclosed is true, accurate and complete and that there are no misrepresentations, misleading statements or material omissions.

Important Content Tips:

1. The board of directors, the board of supervisors and the directors, supervisors and senior management ensure that the quarterly report is true, accurate and complete, that there are no false records, misleading statements or material omissions, and bear individual and joint legal liabilities.

2. The person in charge of the company, the person in charge of accounting work and the person in charge of the accounting institution (accounting supervisor) declare: to ensure that the financial information in the quarterly report is true, accurate and complete.

3. Whether the third quarter report is audited

□ Yes √ No

First, the main financial data

(1) Main accounting data and financial indicators

Whether the company is required to retroactively adjust or restate previous year's accounting data

(2) Non-recurring profit and loss items and amounts

√ Applicable □ Not applicable

Unit: Meta

Other specific cases of P&L items that meet the definition of non-recurring profit or loss:

□ Applicable √ Not applicable

The Company does not have other specific circumstances of profit or loss items that meet the definition of non-recurring profit or loss.

The non-recurring profit and loss items listed in the Interpretive Announcement on the Disclosure of Information of Companies Publicly Offering Securities No. 1 - Non-recurring Profit and Loss are defined as recurring profit and loss items

(3) The circumstances and reasons for the changes in the main accounting data and financial indicators

Statements that change by more than 30 per cent are described below:

1. The amount of notes receivable at the end of the reporting period was 74,530,643.68 yuan, an increase of 217.12% over the beginning of the year, due to the increase in the company's commercial paper collection during the reporting period;

2. The financing amount of receivables at the end of the reporting period was 303,626,665.16 yuan, an increase of 48.74% over the beginning of the year, due to the increase in the collection of bank acceptance bills during the reporting period;

3. The amount of prepayment at the end of the reporting period was 372,588,596.29 yuan, an increase of 313.26% over the beginning of the year, due to the fact that the company prepaid part of the materials in advance in order to reduce procurement costs during the reporting period;

4. The amount of projects under construction at the end of the reporting period was 207,166,249.64 yuan, a decrease of 54.00% from the beginning of the year, due to the fact that the subsidiary DunAn New Energy transferred the equity of its holding subsidiary, Desert Wind Power Heating Co., Ltd., which was no longer included in the scope of the merger;

5. The amount of short-term borrowings at the end of the reporting period was 791,217,178.01 yuan, an increase of 295.52% over the beginning of the year, due to: short-term borrowings from new banks and financial companies during the reporting period;

6. The amount of contract liabilities at the end of the reporting period was 87,160,026.02 yuan, an increase of 146.99% over the beginning of the year, due to: (1) the collection of sales materials by subsidiaries during the reporting period was not invoiced and settled; (2) the number of outstanding final accounts for the completion of some companies' blasting services increased.

7. The amount of other payables at the end of the reporting period was 206,532,780.81 yuan, a decrease of 64.78% from the beginning of the year, due to: the subsidiary's payment of the original controlling shareholder's loan and the acquisition of minority shareholders' equity during the reporting period;

8. The amount of other current liabilities at the end of the reporting period was 10,335,972.77 yuan, an increase of 151.06% over the beginning of the year, due to the increase in contract liabilities during the reporting period and the increase in the amount of tax to be converted;

9. The amount of long-term payables at the end of the reporting period was 20,000,000.00 yuan, a decrease of 96.40% from the beginning of the year, due to: (1) the company's implementation of the new "Leasing" standard, which was affected by the accounting requirements; (2) the transfer of the equity of the holding subsidiary, Desert Wind Power Heating Co., Ltd., which was no longer included in the scope of the merger during the reporting period.

10. The amount of paid-up capital at the end of the reporting period was RMB1,748,574,366.00, an increase of 40% over the beginning of the year, due to: According to the Company's 2020 annual equity distribution plan, based on the Company's total share capital of 1,248,981,690 shares as of December 31, 2020, a cash dividend of RMB 0.55 (including tax) was distributed to all shareholders for every 10 shares, and at the same time, the capital reserve fund was converted to all shareholders for every 10 shares, and the total share capital of the Company was changed to 1 after the increase. 748,574,366 shares.

Statements of income statement that vary by more than 30% are described below:

1. The amount of operating income during the reporting period was 3,622,349,578.97 yuan, an increase of 33.97% over the same period of the previous year, due to the fact that the company's operation did not meet expectations due to the sudden outbreak of new crown pneumonia in the same period of the previous year, and the company resumed operations during the reporting period and the operation of various industries increased steadily;

2. The amount of operating costs during the reporting period was 2,231,468,791.72 yuan, an increase of 37.25% over the same period of the previous year, due to the resumption of operations of the company during the reporting period due to the sudden outbreak of new crown pneumonia in the same period of the previous year;

3. The amount of sales expenses during the reporting period was 76,559,987.38 yuan, an increase of 47.34% over the same period of the previous year, due to: (1) due to the impact of the new crown epidemic in the same period of the previous year, the sales business did not meet expectations, and the resumption of work and production was actively organized in accordance with national policies in the current period, and the sales performance increased steadily; (2) the depreciation and amortization expenses of new assets increased during the reporting period.

4. The amount of management expenses during the reporting period was 358,639,785.48 yuan, an increase of 30.87% over the same period of the previous year, due to: (1) the company's safety expenses were calculated in accordance with Circular No. 16 of 2012 during the reporting period, and the safety expenses increased compared with the same period of the previous year; (2) the intermediary fees caused by the restructuring of Teneng Group and Jiangnan Chemical during the reporting period increased; (3) In the same period of the previous year, social security reductions and exemptions were enjoyed in accordance with national policies, and payment resumed in the current period.

5. The amount of R&D expenses during the reporting period was 75,831,650.86 yuan, an increase of 82.89% over the same period of the previous year, due to the fact that the company attached importance to scientific and technological innovation during the reporting period and increased investment in R&D;

6. The amount of fair value change income during the reporting period was 52,189,200.00 yuan, an increase of 86,174,356.00 yuan over the same period of the previous year, due to the increase in the price of Xuefeng Technology shares held by the company during the reporting period compared with the same period of the previous year;

7. The amount of credit impairment loss during the reporting period was -16,999,714.76 yuan, a decrease of 31,924,356.48 yuan over the same period of the previous year, due to the fact that the company strengthened the "two gold control" during the reporting period, especially the collection of accounts receivable;

8. The amount of income from the disposal of assets during the reporting period was -6,585,295.22 yuan, a decrease of 6,330,533.20 yuan over the same period of the previous year, due to the increase in the losses recognized by the company in the disposal of fixed assets during the reporting period;

9. The amount of non-operating income during the reporting period was 7,140,569.32 yuan, a decrease of 61.76% over the same period of the previous year, due to the decrease in the fines charged by the new energy industry due to supplier defaults during the reporting period compared with the same period of the previous year;

10. The amount of non-operating expenses during the reporting period was 4,477,486.04 yuan, a decrease of 56.54% over the same period of the previous year, due to the decrease in donation expenditure and asset scrapping and damage losses during the reporting period compared with the same period of the previous year;

11. The amount of income tax during the reporting period was 138,213,439.86 yuan, an increase of 61.95% over the same period of the previous year, due to: (1) the total profit in the reporting period increased compared with the same period of the previous year; (2) during the reporting period, some new energy projects have exceeded the period of preferential tax policies.

The cash flow statement changes by more than 30% are described below:

1. The amount of cash flow generated by operating activities during the reporting period was 317,324,872.43 yuan, a decrease of 49.55% over the same period of the previous year, mainly due to: (1) the company prepaid part of the materials in advance in order to reduce procurement costs during the reporting period; (2) the new energy industry electricity price subsidy payment period was long; (3) the blasting company's business payment cycle was long.

2. The amount of cash flow generated by investment activities during the reporting period was -334,834,383.27 yuan, a decrease of 79.43% over the same period of the previous year, mainly due to: (1) the equity investment payment paid by the company during the reporting period increased by 154,871,331.20 yuan compared with the same period of the previous year; (2) the project deposit paid by the company during the reporting period increased by 39,689,719.10 yuan over the same period of the previous year.

3. The amount of cash flow generated by financing activities during the reporting period was -78,858,882.15 yuan, an increase of 335,648,628.81 yuan over the same period of the previous year, mainly due to: (1) the net financing during the reporting period increased by 365,670,840.6 yuan compared with the same period of the previous year; (2) the recovery of the bank draft margin of 60,000,000.00 yuan during the reporting period; (3) the dividend of minority shareholders of the subsidiary increased by 30,525,115.18 yuan over the same period of the previous year.

2. Shareholder Information

(1) The total number of common shareholders and the number of preferred shareholders whose voting rights have been restored and the shareholding of the top ten shareholders

Unit: Shares

(2) The total number of preferred shareholders of the company and the shareholding of the top 10 preferred shareholders

3. Other important matters

Anhui Jiangnan Chemical Co., Ltd. issued shares to North Special Energy Group Co., Ltd. and China North Industries Co., Ltd. to purchase 100% of the equity of North Blasting Technology Co., Ltd., which they jointly held, issued shares to Aoxin Holdings (Hong Kong) Co., Ltd. to purchase 49% of the equity of North Mining Service Co., Ltd. and 49% of the equity of North Mining Investment Co., Ltd., and issued shares to Xi'an Qinghua Civil Blasting Equipment Co., Ltd. and Shaanxi Industrial Investment Co., Ltd. Northern Special Energy Group Co., Ltd. issued shares to purchase a total of 65% of the equity of Shaanxi Qinghua Automobile Safety System Co., Ltd., and issued shares to Guangxi Jianhua Machinery Co., Ltd., Rongxian Chu'an Fireworks and Firecrackers Sales Co., Ltd., Guangxi Rongxian Fengda Agriculture and Animal Husbandry Co., Ltd. and Nandan County Nanxing Antimony Industry Co., Ltd. to purchase a combined 90% equity interest in Guangxi Jinjianhua Civil Blasting Equipment Co., Ltd. The number of new shares listed is 900,348,489 shares, which will be listed on September 30, 2021. Upon completion of the Offering, the total share capital of the Company will increase to 2,648,922,855 Shares. As at the end of the reporting period, the above-mentioned target companies have not been included in the scope of the company's consolidated statements.

4. Quarterly financial statements

(1) Financial statements

1. Consolidated balance sheet

Compilation unit: Anhui Jiangnan Chemical Co., Ltd

Published: September 30, 2021

Legal representative: Wu Zhenguo Person in charge of accounting work: Li Yonghong The person in charge of the accounting institution: Zhang Peng

2. Consolidate the income statement from the beginning of the year to the end of the reporting period

In the event of a merger of enterprises under the same control in the current period, the net profit realized by the merged party before the merger is: 0.00 yuan, and the net profit realized by the merged party in the previous period is 0.00 yuan.

3. Consolidate the cash flow statement from the beginning of the year to the end of the reporting period

(2) Explanation of the adjustment of the financial statements

1. The first implementation of the new lease standard from 2021 to adjust the relevant items of the financial statements at the beginning of the year for the first time

Whether the balance sheet accounts at the beginning of the year need to be adjusted

√ Yes □ No

Consolidated balance sheets

Adjustments

On 7 December 2018, the Ministry of Finance amended and promulgated Accounting Standard for Business Enterprises No. 21 - Leasing (Cai Hui [2018] No. 35, hereinafter referred to as the "New Lease Standard"), which requires enterprises listed both domestically and overseas and enterprises listed overseas and using IFRS or accounting standards for business enterprises to prepare financial statements from 1 January 2019, and other enterprises that implement accounting standards for business enterprises to take effect from 1 January 2021.

2. From 2021, the new leasing standard will be implemented retrospectively to adjust the comparative data description in the previous period

(3) Audit report

Whether the third quarter report was audited

The Company's third quarter report is unaudited.

Board of Directors of Anhui Jiangnan Chemical Co., Ltd

October 25, 2021

Stock code: 002226 Stock abbreviation: Jiangnan Chemical Announcement number: 2021-093

Anhui Jiangnan Chemical Co., Ltd

Announcement on the resolution of the eighth meeting of the sixth board of directors

The Company and all members of the Board of Directors warrant that the contents of the announcement are true, accurate and complete and that there are no misrepresentations, misleading statements or material omissions.

The eighth meeting of the sixth board of directors of Anhui Jiangnan Chemical Co., Ltd. (hereinafter referred to as the "Company" or the "Company") was notified to the directors by e-mail and other means on October 20, 2021, and was held on October 25, 2021 in the company's conference room using on-site combined communication. The meeting should be attended by 9 directors, 9 directors actually attended, and some supervisors and senior management of the company attended the meeting as observers. The procedure for convening the meeting complies with the relevant provisions of the Company Law and the Articles of Association of the Company. The meeting was presided over by Mr. Wu Zhenguo, chairman of the board, and the following proposals were deliberated and passed:

1. Deliberated and approved the "Anhui Jiangnan Chemical Co., Ltd. 2021 Third Quarter Report";

Voting result: 9 votes in favour, 0 votes against, 0 abstentions.

For details, please refer to the "Anhui Jiangnan Chemical Co., Ltd. 2021 Third Quarter Report" (Announcement No. 2021-095) published by the Company on October 26, 2021 in Securities Times, China Securities News, Securities Daily, Shanghai Securities News and Juchao Information Network.

2. Deliberated and passed the "Proposal on the Proposed Signing of The General Contracting Contract and Related Party Transactions of the Subsidiary Company";

Voting result: 5 votes in favour, 0 votes against, 0 abstentions.

Associate directors Wu Zhenguo, Li Hongwei, Guo Xiaokang and Fang Xiao recused themselves from voting. The independent directors issued prior approval opinions and independent opinions on the above matters, and haitong Securities, the independent financial adviser, issued a special verification opinion.

For details, please refer to the Announcement on the Proposed Signing of The General Contracting Contract and Related Party Transactions of the Subsidiaries (Announcement No. 2021-096) published by the Company on October 26, 2021 in Securities Times, China Securities News, Securities Daily, Shanghai Securities News and Juchao Information Network.

The proposal is to be submitted to the Company's Fifth Extraordinary General Meeting of Shareholders in 2021 for consideration.

3. Deliberated and passed the "Proposal on Convening the Fifth Extraordinary General Meeting of Shareholders in 2021".

The Board of Directors has decided to convene the Company's Fifth Extraordinary General Meeting of Shareholders in 2021 on November 11, 2021 to consider the relevant proposals submitted by the Board of Directors.

Voting result: 9 votes in favour, 0 votes against, 0 abstentions.

For details, please refer to the Notice on Convening the Fifth Extraordinary General Meeting of Shareholders in 2021 (Announcement No. 2021-097) published in Securities Times, China Securities News, Securities Daily, Shanghai Securities News and Juchao Information Network on October 26, 2021.

This is hereby announced

2October 26, 2019

Stock code: 002226 Stock abbreviation: Jiangnan Chemical Announcement number: 2021-094

Announcement on the resolution of the fifth meeting of the Sixth Supervisory Board

The Company and all members of the Supervisory Board warrant that the contents of the announcement are true, accurate and complete and that there are no false statements, misleading statements or material omissions.

The fifth meeting of the 6th Supervisory Board of Anhui Jiangnan Chemical Co., Ltd. (hereinafter referred to as "the Company" or "the Company") was notified to the supervisors by e-mail and other means on October 20, 2021, and was held in the company's conference room on the afternoon of October 25, 2021 using on-site combined communication. The meeting should be attended by 3 supervisors, 3 supervisors actually attended, some senior management of the company attended the meeting as observers, and the procedure for convening the meeting complied with the relevant provisions of the Company Law and the Articles of Association of the Company. The meeting was presided over by Mr. Chen Xianhe, Chairman of the Supervisory Board, and the following proposals were deliberated and passed:

The "Anhui Jiangnan Chemical Co., Ltd. 2021 Third Quarter Report" was deliberated and approved.

After review, the Board of Supervisors believes that the procedures for the Board of Directors to prepare and review the Company's third quarter report in 2021 comply with the provisions of laws, administrative regulations and the China Securities Regulatory Commission, and the content of the report is true, accurate and complete to reflect the actual situation of the Company, and there are no false records, misleading statements or material omissions.

Voting result: 3 votes in favour, 0 against, 0 abstentions.

Supervisory Board of Anhui Jiangnan Chemical Co., Ltd

Stock code: 002226 Stock abbreviation: Jiangnan Chemical Announcement number: 2021-096

Regarding the proposed signing of the general contracting contract for the project by the subsidiary company

and announcement of related party transactions

Anhui Jiangnan Chemical Co., Ltd. (hereinafter referred to as "the Company" or "the Company") held the eighth meeting of the sixth board of directors on October 25, 2021, and deliberated and passed the "Proposal on the Proposed Signing of the Project General Contracting Contract and Related Party Transactions by subsidiaries", as follows:

I. Overview of Related Party Transactions

1. Jiuquan Dunan New Energy Co., Ltd. (hereinafter referred to as "Jiuquan Dunan New Energy"), a subsidiary of Zhejiang Dunan New Energy Development Co., Ltd. (hereinafter referred to as "Zhejiang Dunan New Energy"), a wholly-owned subsidiary, intends to invest in the construction of the 100MW project north of the Eighth Wind Farm of Guazhou North Bridge in Gansu Province, with a total investment of 627.9 million yuan. The matter has been deliberated and approved by the seventh meeting of the sixth board of directors of the company, and is subject to the approval of the fourth extraordinary general meeting of shareholders of the company in 2021. For details, please refer to the "Announcement on Wholly-Owned Subsidiaries' Capital Increase to Their Subsidiaries and Investment in The Construction of Wind Farm Projects" (Announcement No. 2021-090) published by the Company on October 14, 2021 in Securities Times, China Securities News, Securities Daily, Shanghai Securities News and Juchao Information Network.

Jiuquan Dunan New Energy, as the contractor, intends to reach a consensus with the contractor (Shanghai Electric Power Design Institute Co., Ltd. as the "lead party" and member unit 1: North International Cooperation Co., Ltd., member unit 2: China Water Conservancy and Hydropower Sixth Engineering Bureau Co., Ltd.), the two parties reached consensus on the engineering general contracting of the 100MW wind power project north of the eighth wind farm of the Guazhou North Bridge in Gansu Province, and intend to sign the "Gansu Guazhou North Bridge Eighth Wind Farm North 100MW Wind Power Project General Contracting Contract". The total contract amount was RMB498,919,148.42.

2. The member unit of the contractor is 1: the controlling shareholder and actual controller of North International Cooperation Co., Ltd. (stock abbreviation: North International Securities Code: 000065) is China North Industries Co., Ltd., and the actual controller of the Company, China North Industries Group Co., Ltd., is the consistent actor of China North Industries Co., Ltd. According to the Rules Governing the Listing of Shares on the Shenzhen Stock Exchange, Northern International Cooperation Co., Ltd. is an affiliated legal person of the Company, and this transaction constitutes a related party transaction.

3. The eighth meeting of the sixth board of directors of the company deliberated and passed the "Proposal on the Proposed Signing of the General Contracting Contract and Related Party Transactions of the Subsidiary Company", and the affiliated directors Wu Zhenguo, Li Hongwei, Guo Xiaokang and Fang Xiao, who attended the meeting, recused themselves from voting. The related party transaction has been approved in advance by all independent directors and an independent opinion has been expressed.

According to the Listing Rules of the Shenzhen Stock Exchange and the Articles of Association of the Company, the related party transaction is subject to the approval of the shareholders' general meeting, and the related party with an interest in the related party transaction will recuse themselves from the shareholders' meeting

decide.

4. The related party transaction does not constitute a major asset restructuring as stipulated in the Measures for the Administration of Material Asset Restructuring of Listed Companies.

2. Basic information of related parties

(1) The basic situation of The Northern International Cooperation Co., Ltd

1. Enterprise name: North International Cooperation Co., Ltd

2. Unified social credit code: 91110000192472028J

3. Type of enterprise: Other joint-stock limited company (listed)

4. Legal representative: Yuan Jun

5. Date of establishment: April 5, 1986

6. Registered capital: 769.516342 million yuan

7. Address: 3rd Floor, Building 47, District 12, No. 188 South Fourth Ring West Road, Fengtai District, Beijing (301, 302)

8. Business scope: general contracting of construction of various types of industrial, energy, transportation and civil engineering construction projects; contracting of overseas projects and domestic international bidding projects; export of equipment and materials required for the above-mentioned overseas projects; dispatch of labor personnel required for the implementation of the above-mentioned overseas projects; self-operation and agency of import and export business of various commodities and technologies, except for commodities and technologies that the state restricts the company to operate or prohibit import and export; operates import and processing and "three to one supplement" business; operates countermarket trade and entrepot trade; aluminum profiles, aluminum doors and windows, Aluminium products, building curtain walls and interior and exterior decoration engineering design, production, construction, mechanical installation and repair. (Market entities independently choose business projects and carry out business activities in accordance with law; projects that require approval in accordance with law shall carry out business activities in accordance with the approved content after approval by relevant departments; and must not engage in business activities of projects prohibited and restricted by national and municipal industrial policies.) ）

9. The latest audited financial data: total assets at the end of 2020 were 18,081,386,000 yuan, net assets attributable to shareholders of listed companies were 5,623,272,800 yuan, operating income in 2020 was 12,850,656,200 yuan, and net profit attributable to shareholders of listed companies was 751,378,400 yuan.

10. The controlling shareholder and actual controller of North International Cooperation Co., Ltd. is China North Industries Co., Ltd.

11. Northern International Cooperation Co., Ltd. is not a judgment defaulter.

(2) An explanation of what kind of specific relationship is constituted.

The controlling shareholder and actual controller of North International Cooperation Co., Ltd. is China North Industries Co., Ltd., and the actual controller of the Company, China North Industries Group Co., Ltd., is a consistent actor of China North Industries Co., Ltd. According to the Rules Governing the Listing of Shares on the Shenzhen Stock Exchange, Northern International Cooperation Co., Ltd. is an affiliated legal person of the Company, and this transaction constitutes a related party transaction.

3. The basic situation of the subject matter of the related party transaction

The subject of the related party transaction is the general contracting contract for the 100MW wind power project north of the Eighth Wind Farm of the Guazhou North Bridge in Gansu Province. The scope of project contracting includes pre-project, land acquisition, survey, design, procurement, construction, grid connection and acceptance/turnkey project general contracting.

4. Pricing policy and pricing basis of the transaction

The related party transaction formed due to the 100MW project of the Eighth Wind Farm North of Guazhou North Bridge in Gansu is a normal transaction within the business scope of the subsidiary Jiuquan Dunan New Energy, which is the normal need of the company's business development and production and operation, and the pricing method, transaction price and settlement cycle are determined with reference to the market level of the same period, fair and reasonable, and the pricing of the transaction is in line with the principle of openness and fairness, will not affect the independence of the company, and there is no harm to the interests of the company and other non-related shareholders, especially small and medium-sized shareholders.

5. The main content of the transaction agreement

Contractor (full name): Jiuquan Dunan New Energy Co., Ltd

Contractor (full name): a consortium consisting of Shanghai Electric Power Design Institute Co., Ltd., Northern International Cooperation Co., Ltd., and China Water Resources and Hydropower Sixth Engineering Bureau Co., Ltd

In accordance with the Civil Code of the People's Republic of China, the Construction Law of the People's Republic of China and relevant laws and regulations, following the principles of equality, voluntariness, fairness and good faith, the contractor refers to: Jiuquan Dunan New Energy Co., Ltd.; the contractor refers to the consortium composed of Shanghai Electric Power Design Institute Co., Ltd. as the lead party (hereinafter referred to as the lead party) and The Northern International Cooperation Co., Ltd. (hereinafter referred to as member unit 1) and China Water Resources and Hydropower Sixth Engineering Bureau Co., Ltd. (hereinafter referred to as member unit 2), The two sides reached a consensus on the general contracting of the 100MW wind power project north of the eighth wind farm of the Guazhou North Bridge in Gansu Province and related matters, and jointly reached the following agreement:

(1) Project overview

1. Project Name: Gansu Guazhou North Bridge Eighth Wind Farm North 100MW Wind Power Project

2. Project site: Guazhou County, Jiuquan City, Gansu Province

3. Project content and scale: 100MW

4. Scope of project contracting: The general contracting of the project, including the pre-project, land acquisition, survey, design, procurement, construction, grid connection and various acceptance/turnkey project general contracting, the scope of work is (including but not limited to): pre-project, land acquisition, survey, design, procurement, construction, etc.

(2) Contract duration

Planned commencement date: subject to the time of notice of the contract issuing party's commencement order;

Planned completion date: June 30, 2022.

(3) Quality standards

Engineering quality standards: in line with the contract and national or industry quality inspection and assessment conformity standards (standards with different implementation of high standards).

(4) The contract price and the form of the contract price

1. Contract price: RMB (capitalized) 仟仟佰玖拾壹壹百仟百仟百百仟仟百 The safe and civilized construction fee is not less than 2% of the construction and installation project cost, which is RMB (capitalized) 10000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000

2. Contract Price Form:

The contracting form of this contract is fixed total price contracting, and the total contract price is the closed price, that is, within the scope of bidding, the quotation is fixed and unchanged, and the relevant expenses already borne by the contracting party within the scope of the project contract can be directly deducted from the total contract price.

(5) Commitments

1. The contractor undertakes to perform the project approval procedures, raise construction funds and pay the contract price in accordance with the time limit and method agreed in the contract in accordance with the provisions of the law.

2. The contractor undertakes to organize the completion of the design, procurement and construction of the project in accordance with the provisions of the law and the contract, to ensure the quality and safety of the project, not to subcontract and illegal subcontracting, and to assume the corresponding engineering maintenance responsibility during the defect liability period and warranty period. The contractor shall ensure the quality and integrity of the contractor and resolutely put an end to fraud and illegal operations.

(6) The contract shall enter into force

This contract shall enter into force after being examined and approved by the competent authorities of the parties to the contract, signed by the legal representatives of both parties or their entrusted agents and stamped with the official seal or the special seal of the contract, and shall become invalid after the parties to the contract have fulfilled their respective contractual obligations.

6. Purpose of the transaction and impact on the listed company

The pricing of the related party transaction is a fair pricing based on the reference market price under the principle of independent transaction, the settlement method is reasonable, and there is no harm to the interests of the company and minority shareholders. There will be no adverse effect on the Company's going concern and independence. The timely implementation of this contract will have a positive impact on the Company's future operating performance.

7. The total amount of various related party transactions that have occurred with the related party from the beginning of the year to the disclosure date

As of the disclosure date of this announcement, the cumulative amount of various related party transactions that have occurred between the Company and the related party, Northern International Cooperation Co., Ltd., is 0 yuan (excluding the amount of this transaction).

8. Prior approval and independent opinion of independent directors

(1) Prior approval opinions of independent directors

The related party transaction is a normal transaction within the business scope of the subsidiary Jiuquan Dunan New Energy Co., Ltd., the transaction pricing is fair and reasonable, it is the normal need of the company's business development and production and operation, it will not adversely affect the company's business activities, and there is no harm to the interests of the company and all shareholders, especially small and medium-sized shareholders. We agree to submit the Proposal on the Proposed Signing of EPC Contracts and Related Party Transactions by Subsidiaries to the Eighth Meeting of the Sixth Board of Directors of the Company for consideration.

(2) Opinions of independent directors

We believe that this related party transaction follows the principle of fairness and openness, and there is no harm to the interests of the company, shareholders, especially small and medium-sized shareholders. When the board of directors of the company deliberated on the related party transaction, the affiliated directors recused themselves, and the decision-making procedure was legal and effective, in accordance with the relevant laws, regulations and the provisions of the Articles of Association of the Company.

IX. Verification opinions of independent financial advisers

After verification, Haitong Securities, an independent financial adviser, believes that the related party transaction has been deliberated and approved by the board of directors of the company, the affiliated directors have recused themselves from voting, the independent directors have made prior approval and issued independent opinions, and the transaction still needs to be submitted to the shareholders' general meeting for deliberation and approval, which meets the requirements of relevant laws and regulations such as the Company Law, the Rules for the Listing of Stocks on the Shenzhen Stock Exchange, and the Guidelines for the Standardized Operation of Listed Companies on the Shenzhen Stock Exchange, and at the same time complies with the provisions of the Articles of Association of the Company. The independent financial adviser has no objection to the proposed signing of the EPC contract and related party transactions by the subsidiaries of the listed company.

10. Documents for reference

1. Resolution of the eighth meeting of the sixth board of directors of the company;

2. Prior approval opinions and independent opinions of independent directors;

3. Verification opinion of Haitong Securities Co., Ltd. on the independent financial adviser of Anhui Jiangnan Chemical Co., Ltd. on the proposed signing of the project general contracting contract and related party transactions by its subsidiaries.

Stock code: 002226 Stock abbreviation: Jiangnan Chemical Announcement number: 2021-097

Notice of convocation of the Fifth Extraordinary General Meeting of Shareholders in 2021

The eighth meeting of the sixth board of directors of Anhui Jiangnan Chemical Co., Ltd. (hereinafter referred to as the "Company" or "the Company") was held on October 25, 2021, and the meeting decided to convene the fifth extraordinary general meeting of shareholders of the company in 2021 on November 11, 2021, and the relevant matters of the shareholders' meeting are hereby notified as follows:

1. The basic situation of convening a meeting

1. Session: The Fifth Extraordinary General Meeting of Shareholders in 2021

2. Convener of the meeting: the board of directors of the company

3. Legitimacy and compliance of the meeting: The eighth meeting of the sixth board of directors of the company deliberated and passed the "Proposal on Convening the Fifth Extraordinary General Meeting of Shareholders in 2021", and the convening of the shareholders' meeting complied with the relevant laws, administrative regulations, departmental rules, normative documents and the articles of association of the company.

4. Time of the meeting:

(1) The on-site meeting will be held at 14:00 on Thursday, November 11, 2021.

(2) Online voting time: November 11, 2021; among them, the specific time for online voting through the Shenzhen Stock Exchange trading system is: 9:15-9:25, 9:30-11:30 and 13:00-15:00 on November 11, 2021; the specific time for online voting through the Internet voting system of the Shenzhen Stock Exchange is any time from 9:15 a.m. to 15:00 p.m. on November 11, 2021.

5. Method of convening the meeting: The company will provide the company's shareholders with a voting platform in the form of a network through the Shenzhen Stock Exchange trading system and the Internet voting system, and the company's shareholders can exercise voting rights through the above system during the above network voting time. Shareholders of the company can only choose one of the voting methods of on-site voting and online voting, and the voting result shall be subject to the first valid voting result.

6. Date of registration of shares: November 8, 2021 (Monday)

7. Participants:

(1) Shareholders of the Company registered with the Shenzhen Branch of China Securities Depository and Clearing Co., Ltd. as of the close of business on the afternoon of November 8, 2021 shall have the right to attend the General Meeting of Shareholders and participate in the voting in the manner announced in this Notice; shareholders who are unable to attend the on-site meeting in person for any reason may appoint a proxy in writing to attend the meeting and participate in the voting, and the shareholder agent need not be a shareholder of the Company.

(2) Directors, supervisors and senior management of the company.

(3) Lawyers hired by the company.

8. Meeting place: Company conference room (Address: 17th floor, Block A, Building J2, Innovation Industrial Park, Phase II, Innovation Industrial Park, No. 2800 Innovation Avenue, High-tech Development Zone, Hefei, Anhui Province)

II. Matters to be considered at the Meeting:

1. Deliberate the "Proposal on the Proposed Signing of The General Contracting Contract and Related Party Transactions of the Subsidiary Company".

The above proposals have been deliberated and approved by the eighth meeting of the sixth board of directors of the company, and the specific content can be found in the relevant announcements published by the company in Securities Times, China Securities News, Securities Daily, Shanghai Securities News and Juchao Information Network.

The above proposal is a major matter involving the interests of small and medium-sized investors, and the company will count the votes of small and medium-sized investors separately. Minority investors refer to shareholders other than directors, supervisors, senior management personnel and shareholders who individually or collectively hold more than 5% of the company's shares.

The above proposal involves related party transactions, and related shareholders are required to recuse themselves from voting.

III. Proposal Coding

Table 1: Code of proposals for this shareholders' meeting:

4. Registration matters for the meeting

2. Registration method:

(1) Natural person shareholders holding their own IDENTITY cards, shareholder account cards, shareholding certificates, etc. to go through registration procedures;

(2) The legal person shareholder shall go through the registration formalities with a copy of the business license (with the official seal), the unit shareholding certificate, the legal person power of attorney and the original ID card of the attendee;

(3) The entrusted agent shall go through the registration formalities with the original ID card, the power of attorney, the securities account card of the principal and the shareholding certificate;

(4) Non-local shareholders can register by letter or fax with the above relevant documents (must be delivered or faxed to the company before 17:00 pm on November 9, 2021), and telephone registration is not accepted.

3. Registration location: Securities Investment Department of Anhui Jiangnan Chemical Co., Ltd. Letter registration address: Anhui Jiangnan Chemical Co., Ltd. Securities Investment Department, please indicate the words "shareholders' meeting" on the letter. Address: 17th Floor, Block A, Building J2, Phase II, Innovation Industrial Park, No. 2 Innovation Avenue, High-tech Development Zone, Hefei, Anhui Province, Postal Code: 230088, Fax: [phone].

4. The meeting period is half a day, and the shareholders or agents participating in the meeting are responsible for their own food, accommodation and transportation expenses.

5. Contact:

Contact: Zhang Dongsheng

Contact number: 0551-65862589

Fax:[phone]

E-mail: [email protected]

Address: Anhui Province Hefei High-tech Development Zone Innovation Avenue No. 2800 Innovation Industrial Park Phase II J2 Building A 17 floors

V. The specific operational procedures for participating in online voting

At the shareholders' meeting, shareholders can participate in voting through the Shenzhen Stock Exchange trading system and the Internet voting system (address http://wltp.cninfo.com.cn), and the specific operation process of online voting is shown in Annex 1.

6. Documents for reference

1. Resolution of the eighth meeting of the sixth board of directors;

2. Other documents required by the Shenzhen Stock Exchange.

Notice is hereby given

Annex I:

The specific process of participating in online voting

1. Procedures for online voting

1. Voting code: 362226

2. Voting abbreviation: Jiangnan Voting

3. The proposal of this shareholders' meeting is a non-cumulative voting proposal, and the voting opinions that shareholders can fill in on the proposal are:

Agree, oppose, abstain.

4. Shareholders voting on the general proposal shall be deemed to have expressed the same opinion on all other proposals except the cumulative voting proposal. In the event of repeated voting by shareholders on the general proposal and the specific proposal, the first valid vote shall prevail. If the shareholders first vote on the specific proposal and then vote on the general proposal, the voting opinions of the specific proposals that have been voted on shall prevail, and the voting opinions of the general proposals shall prevail for other uncontested proposals; if the general proposal is voted on first, and then the voting opinions of the specific proposal shall prevail.

2. Procedures for voting through the trading system of the Shenzhen Stock Exchange

1. Voting time: Trading hours on November 11, 2021, that is, 9:15-9:25, 9:30-11:30 and 13:00-15:00.

2. Shareholders can log in to the trading client of the securities company and vote through the trading system.

3. Voting procedures through the Internet voting system of the Shenzhen Stock Exchange

1. The Internet voting system will start voting at any time from 9:15 a.m. to 15:00 p.m. on November 11, 2021.

2. For shareholders to vote online through the Internet voting system, they need to apply for identity authentication in accordance with the provisions of the "Shenzhen Stock Exchange Investor Network Service Identity Authentication Business Guidelines (Revised in 2016)" and obtain the "Shenzhen Stock Exchange Digital Certificate" or "Shenzhen Stock Exchange Investor Service Password". The specific identity authentication process can be accessed in the Http://wltp.cninfo.com.cn Rules guidelines section of the Internet voting system.

3. The service password or digital certificate obtained by the shareholder can be registered http://wltp.cninfo.com.cn and voted through the Internet voting system of the Shenzhen Stock Exchange within the specified time.

Annex II: Power of Attorney

Letter of Delegation of Attorney

I hereby authorize Mr. (Ms.) to represent my unit (myself) to attend the Fifth Extraordinary General Meeting of Shareholders of Anhui Jiangnan Chemical Co., Ltd. in 2021 held on November 11, 2021, and to vote on the following proposals on behalf of my unit (me) in accordance with the following instructions. If the company/ I do not make specific instructions for the voting matters at this meeting, the trustee may exercise the voting rights on behalf of the trustee, and the consequences of the exercise of the voting rights shall be borne by our unit (myself).

Principal's name or title (signature):

Number of principal's shares:

Principal's Identity Card Number (Business License Number):

Principal Shareholder Account Number:

Trustee Signature:

Trustee's Identity Card Number:

Commission Date: Year Month Day

Limited duration of proxy: from signing to the end of this general meeting of shareholders

Remarks: The power of attorney is valid for clipping, copying or self-made in the above format; the unit entrustment must be stamped with the official seal of the unit.